Grangemouth’s industrial workforce and community are being asked to contribute their views on the future of the area.
A draft plan has been published as part of work to support a just transition to net zero and support the growth of the area towards a decarbonised economy.
The regional just transition plan is the first of its kind. It sets out the Scottish Government’s vision for the future of the Grangemouth industrial cluster and how the local community could benefit as a result.
By successfully decarbonising, Grangemouth can become a global leader in sustainable manufacturing and production, attracting investment and supporting both the existing and future workforce, and the community, long into the future.
The Scottish Government has worked in partnership with the Grangemouth Future Industry Board to develop the Grangemouth Industrial Just Transition Plan which supports industrial decarbonisation, low-carbon manufacturing, net zero community wealth building and reskilling and developing the local workforce.
Proposed actions include:
developing an industry-led technical and commercial investment strategy which includes a decarbonisation pathway to secure investment for scale up
creating a Grangemouth Industrial Skills offer to help tailor training needs for the existing and future workforce
improving the co-ordination of initiatives across the Forth Valley to ensure targeted interventions match needs
funding a recognised Community Engagement and Participation Manager as a first step in supporting the community to play a role in decision making
establishing a Grangemouth Regulatory Hub to support a just transition and understand how regulation can unlock industrial decarbonisation
Acting Minister for Climate Action Alasdair Allan said: “Grangemouth has long played a vital role as Scotland’s leading industrial cluster and it is right that the area continues to help lead the way in our journey to net zero by 2045.
“Our first regional Just Transition plan published today sets out our approach to support the growth of a decarbonised economy that puts local communities at its heart. It makes clear our vision for the future and gives specific actions across a number of areas to help achieve a just transition for Grangemouth.
“The plan complements our ongoing activity focused around Grangemouth, including our support package in response to the proposed closure of the refinery and the work we are doing to explore low carbon transition opportunities for the refinery workforce.
“We are working hard to secure a sustainable, long-term future for the wider industrial cluster and its skilled workforce, and this plan will be vital in helping us to deliver this.
“The consultation is an opportunity to help shape the development of the plan, and Grangemouth’s future. I encourage all who have a vested interest to participate.”
CVS Falkirk and District Chief Executive Officer, Victoria McRae said: “The voice of local communities must be heard in relation to the plans for a Just Transition for Grangemouth.
“As the Third Sector Interface for the local area, CVS Falkirk and District are pleased to be able to take forward, support and facilitate these important conversations. We look forward to hearing a range of views and we have opened a Hub in Grangemouth’s Town Centre to provide a base for this discussion and engagement.”
Syngenta Head of Corporate Affairs UK, Luke Gibbs said: “Syngenta is a large scale fine chemical manufacturer anchoring the Grangemouth Chemical Cluster.
“We believe that the Grangemouth Just Transition Plan is an important part of achieving a sustainable future across the range of activities that together form the wider Grangemouth industrial area – fine chemicals, petrochemicals, pharmaceuticals, and biotechnology.
“As such, this consultation provides a key opportunity for companies in Grangemouth to input their views and highlight needs, and collectively achieve a sustainable, enabling, investable, and viable future for all.”
Join Unite on Thursday 28 November 2024 and help Save Scotland’s last oil refinery.
Get your work colleagues, friends and family to come too. From the Workplace to the Capital, join the rally on Thursday 28 November 2024.
Assemble at 10:00 at Johnston Terrace (top end), Edinburgh, EH1 2PW and at 10.20 march to Holyrood for a rally with Sharon Graham, Unite general secretary.
HOLYROOD and WESTMINSTER GOVERNMENTS RESPOND TO PETROINEOS’ DECISION TO CLOSE OIL REFINERY
The Scottish and UK Governments have announced a joint investment plan for Grangemouth following Petroineos’ decision to decommission its oil refinery and pledged to work together for an industrial future for the site.
The company today confirmed it will cease refining oil at the site during the second quarter of 2025 onwards due to global market pressures and competition from bigger, more modern and efficient sites in the Middle East, Asia and Africa.
This follows years of loss-making, with the company stating that it has lost more than $775 million since 2011 despite having invested more than $1.2 billion to maintain the refinery’s safe operation.
UNITE trade union general secretary Sharon Graeme said the closure is ‘an act of industrial vandalism, pure and simple’.
The Scottish Government has been working with the UK Government to deliver an investment plan that will help secure Grangemouth’s industrial future and protect its skilled workforce.
This includes:
£100 million package. This includes £20 million in joint funding from the Scottish and UK Governments announced today on top of £80 million in joint funding from the two governments for the Falkirk and Grangemouth Growth Deal. This funding will support the community and its workers, investing in local energy projects to create new opportunities for growth in the region. Over the next 30 years, it is estimated that the Falkirk & Grangemouth Growth Deal will deliver over £628 million in economic benefits, with an employment impact of 1660 net jobs across the Falkirk Council area.
Immediate career support for workers. Scottish and UK Government to provide tailored support that will help affected workers in finding new employment.
Investment in the site’s long-term future. The £1.5 million joint-funded Project Willow study has identified a shortlist of three credible options to begin building a new long-term industry at the refinery site, including low carbon hydrogen, clean eFuels and sustainable aviation fuels.
It comes as the UK Government confirmed today it stands ready to engage on how the National Wealth Fund could back projects that have the potential to yield a viable long-term future for the site.
Ministers have confirmed that both governments will put local businesses, workers, and trade unions at the heart of decision-making on determining the region’s industrial future.
Cabinet Secretary for Net Zero and Energy Gillian Martin said:“My immediate thoughts are with the workforce. This is a very challenging time for them and their families, and we will support every worker affected by this decision.
“We are working very closely with the UK Government and together we have communicated our disappointment to Petroineos today.
“The Scottish Government has consistently made clear our preference was for refining to continue as long as possible, and we have continued to press the shareholders for a positive decision until the 11th hour.
“This significant package of support combines immediate help for affected workers and a long-term contribution to ensure that Grangemouth continues to thrive in the future. We are clear that there should be a just transition for the refinery site and we remain committed to bringing forward low carbon opportunities that will sustain skilled jobs across the wider area for many years to come.”
UK Government Energy Secretary Ed Miliband said:“It is deeply disappointing that Petroineos have confirmed their previous decision to close Grangemouth oil refinery.
“We will stand with the workforce in these difficult times, that is why we are announcing a package of investment to help the workforce find good, alternative jobs, invest in the community and serve a viable industrial future for the Grangemouth site, with potential for future support from the National Wealth Fund.
“Unlike in the past, the government is working in lockstep with the Scottish Government across every front. Workers and their families should be in no doubt this is a Government that stands with workers, trade unions, and businesses to fight for jobs and investment in Scotland.”
Secretary of State for Scotland Ian Murray said: “I understand this is a worrying time for the workers at the refinery and the UK Government is working closely with the Scottish Government and Petroineos to ensure they are being supported.
“Both governments have invested in Project Willow to examine how Grangemouth remains an energy hub in Scotland. The enhanced £100 million Falkirk and Grangemouth Growth Deal announced today will help ensure the long-term future of the site – a key part of our journey to clean energy by 2030.
“We remain committed to working together looking at how we can help the area build on its skilled workforce and local expertise to boost economic growth.”
The Energy Secretary Ed Miliband and Cabinet Secretary for Net Zero and Energy Gillian Martin have taken joint action to urgently engage with Petroineos, industry experts, and trade unions in exploring all possible solutions to secure a viable industrial site for the future, in the event of a decision from the company to close the refinery.
Ministers continue to urge the company to keep refining open for as long as possible, emphasising the company’s responsibility to its employees and the community.
As the company has made clear that there is no viable commercial future for the refinery business, the Scottish and UK Governments have today unveiled a package to help the workforce, invest in the area and secure a viable industrial future for the Grangemouth site, as one of Scotland’s key industrial heartlands.
The company’s decision to convert to an import terminal means that their fuel supply will now be maintained by importing refined products directly, rather than importing crude oil to refine on site.
This will form part of the UK’s diverse and resilient fuel market, covering both imported fuel and refined oil production. Since 2013, the UK has been a net importer of refined products, with imports accounting for 51% of UK demand for all petroleum products in 2023.
In response to today’s news from the company, the Energy Secretary Ed Miliband will co-chair an immediate virtual meeting of the Grangemouth Future Industry Board, with Cabinet Secretary for Net Zero and Energy Gillian Martin, and the UK Government Secretary of State for Scotland Ian Murray. Ministers will discuss next steps with local industry leaders, Falkirk Council, trade bodies and unions – ahead of an in-person meeting of the Grangemouth Future Industry Board later in Autumn.
‘AN ACT OF INDUSTRIAL VANDALISM’
Unite, the UK’s leading union, has vowed to explore all avenues to preserve high quality jobs at Grangemouth following the announcement that PetroIneos will go ahead with its plans to close its refinery.
PetroIneos confirmed today that it intends to close the refinery at Grangemouth between April – June 2025 and become an import and export only facility. The announcement places in jeopardy the jobs of the 500 workers directly employed (represented by Unite) at Grangemouth and thousands more in the supply chain.
There is widespread fury within the workplace due to the failure of the bosses and politicians to ensure the future of the site.
Unite general secretary Sharon Graham said: “This is an act of industrial vandalism, pure and simple.
“This dedicated workforce has been let down by PetroIneos and by the politicians in Westminster and Holyrood who have failed to guarantee production until alternative jobs are in place.
“This is now the last chance for this Labour government to show whether its really on the side of workers and communities. The road to net zero cannot be paid for with workers’ jobs.
“The government must put its money where its mouth is to ensure the jobs are safeguarded. This is the only refinery left in Scotland and it must remain. There are alternative plans.
“This is yet another example of workers paying for a crisis they did not create while billionaire owners laugh all the way to the bank “
Unite is now in high level talks with the government about alternatives for the site including the production of sustainable aviation fuel.
Derek Thomson, Unite Scottish Secretary said: “The sole objective for Unite remains that the jobs at the refinery and thousands more in the supply chain are protected by any means.
“Unite does not accept that the future of the refinery should have been left to the whim and avarice of shareholders. The complex is critical to the nation’s manufacturing base and energy security. The governments involved cannot simply hide behind the convenient smokescreen that this is a commercial decision which they couldn’t influence.”
The Grangemouth complex is of critical strategic economic and infrastructure importance for Scotland and the UK.
It is the only oil refinery in Scotland and it provides four per cent of its GDP and eight per cent of the nation’s manufacturing base.
The Grangemouth support package announced by the Scottish and UK Governments today includes :–
Joint Grangemouth support package:
The Scottish and UK Governments have today confirmed a joint £100 million support package for Grangemouth.
This includes a total of £20 million in additional investments, to support the local Grangemouth community following the closure of the refinery. It covers:
The £10 million Scottish Government ‘Greener Grangemouth’ programme, that aims to deliver projects at the heart of Grangemouth’s just transition.
£10 million from the UK Government for local energy projects, as well as new skills support from the Office for Clean Energy Jobs to help the site’s workers into good clean energy jobs.
Today’s additional funding comes on top of an £80 million Falkirk and Grangemouth Growth Deal, match-funded by the two governments, to back new industries across the region.
The Growth Deal will support a range of new projects, including:
A bioeconomy plant already in the pipeline, which could use waste whisky and food in chemical production processes to reduce reliance on fossil fuels – via technology currently unavailable in the UK.
A new £9m technology centre to support the development, manufacture and use of low carbon technologies. This will help companies substitute their products and industrial processes for greener alternatives, and will be linked to wider hydrogen and carbon capture use and storage projects.
An employment hub led by one of the UK’s largest operators, Forth Ports, will help develop the skilled workforce needed to support emerging energy sectors. The move will help to drive innovation and attract new investment across sectors, such as offshore wind energy, renewable energy production, storage and distribution, and tidal power.
Immediate career support for workers:
The Scottish and UK Governments are working closely with the company, Petroineos, to provide immediate support for affected workers at Grangemouth refinery, while longer-term projects get up and running on the site.
The trade body Fuels Industry UK will ensure affected Grangemouth workers have direct access to a wide range of potential employers. The association will also work with the specialist skills provider Cogent to host job vacancies from relevant employers for the Grangemouth workforce.
Workers at the refinery will also receive tailored advice, helping them to identify new training opportunities – backed by the Scottish Government’s Partnership Action for Continuing Employment framework.
The UK Government has also confirmed that Grangemouth will be among the first areas that the new Office for Clean Energy Jobs will work with to help deliver a just transition for workers.
Project Willow:
A range of proposals to deliver a viable long-term future for the Grangemouth refinery site have been shortlisted by the UK and Scottish governments, as part of a joint-funded £1.5 million feasibility study.
The project is exploring how the region can build on its skilled workforce, local expertise and long heritage as a fuel leader in Scotland to forge a new path in clean energy production.
Following an initial research phase, the project has identified three potential industries that could be hosted on the refinery site. These are:
The production of low-carbon hydrogen.
Clean eFuels synthesised from chemical components like hydrogen or carbon dioxide
Sustainable aviation fuels which use lower carbon sources like forestry and agricultural waste, used cooking oil and carbon captured from the air to produce jet fuel.
These options will now be tested against their potential to create long-term industries in Grangemouth, support new jobs and contribute to the UK’s clean energy transition. The project will engage extensively with the local community, trade unions, businesses, and industrial experts on rapidly assessing the most viable candidates for industrial production on the Grangemouth site.
The transition to a low carbon economy offers huge opportunities for the town of Grangemouth – but work must be done to ensure that local people and businesses aren’t left behind.
That’s the verdict of a Holyrood committee, which yesterday released the result of its inquiry into a Just Transition for the Grangemouth Area.
The Economy and Fair Work Committee took evidence from local residents, representatives from industry, trade unions and the Scottish and UK Governments as part of a wide-ranging inquiry into how the transition should be managed.
The report makes several key recommendations ahead of the Scottish Government’s own “dedicated and focused Grangemouth just transition plan.” These include a call for the plan to map the transition for the whole area rather than just the industrial site.
Committee Convener Claire Baker MSP said: “Scotland’s just transition to a low-carbon economy presents significant opportunities – not just for the economy, but also for our communities. Nowhere is that clearer than in relation to the Grangemouth Refinery.
“It is clear from the response from the local community that any just transition must maximise opportunities for the town itself, and ensure that the benefits are felt widely.
“The potential for significant regeneration and improvement is on the town’s doorstep, and it is now down to the UK and Scottish Governments, as well as INEOS, to make sure it is fully realised.”
The Committee wants the Government to meaningfully engage with the community and co-design its plans, allowing the community to have a direct impact in the future direction of their town.
The report also stresses the importance of the Acorn Project for carbon capture, which aims to capture and store up to one million tonnes of CO2 by 2027. The Acorn Project is a “critical enabler” for INEOS’ ambitions for the Grangemouth site, according to the report.
Funding for carbon capture lies with the UK Government. Minister Graham Stuart MP told the Committee that while the project was not selected to receive funding in the first round in October 2021, Grangemouth was in “pole position” for future rounds. An update is expected in the summer.
Claire Baker MSP continued: “While the Committee welcomes the sentiment that Grangemouth is well placed to receive funding for carbon capture, these warm words must now be backed up with a commitment. Funding the Acorn Project will truly unlock the potential of the site and must be a priority.”
Unite members working at the INEOS refinery at Grangemouth have won a legal battle that strengthens collective bargaining rights and will prevent employers bypassing unions to impose pay deals on employees.
The Employment Appeal Tribunal has ordered global chemical firm, INEOS, to pay compensation to 28 Unite members employed at its Grangemouth site of £3,830 each, after it tried to impose a 2.8 per cent pay award on them in 2017. Their union, Unite, had previously rejected the offer.
This latest ruling strengthens the law on ‘unlawful inducements’ to surrender trade union rights. It builds on the ground-breaking Kostal UK Lytd v Dunkley and ors case, which Thompsons successfully won alongside Unite the Union last year.
Neil Todd, trade union specialist at Thompsons Solicitors, said: “This is a key victory not only for the Unite members involved, but for all workers in trade unions across the UK.
“The right of a recognised trade union to collectively bargain on behalf of its members is fundamental to workers’ rights and this judgment makes clear that it should be respected by employers.
“Along with the Kostal case, a spotlight is finally being thrown by the courts on trade union bargaining rights and it’s not looking good for employers who think they can ignore trade unions when they choose”
The Unite members argued that imposing the pay increase outside the collective bargaining process amounted to an unlawful inducement to give up collective bargaining rights.
Documents disclosed during the legal proceedings revealed a member of the firm’s senior leadership team had suggested the company needed to “engineer a way to get rid of Unite and replace them with a different representative body” after its members refused to vote in favour of the proposed offer.
The initial tribunal in 2018 ruled in favour of the workers, but INEOS appealed the judgment and that appeal was subsequently delayed pending the outcome of the related Kostal UK Lytd v Dunkley and ors case, which had progressed to the Supreme Court.
The Kostal case saw Unite members, again represented by Thompsons Solicitors, successfully take legal action against their Rotherham-based employer for trying to bypass union pay negotiations
. This was a ground-breaking case, billed at the time as the most important trade union rights case in over a decade – and the first case in the UK’s highest court on trade union bargaining rights.
Mr Todd said: “This victory sends a clear message to employers. One, you won’t get away with issuing statements of intent to vary an employee’s pay and deem that offer accepted if the employee continues to work.
“And two, you can’t simply declare something to be “a final offer” to suggest collective bargaining is exhausted and then bypass the recognised trade union to make direct approaches to workers.
“We are delighted to build on our ground-breaking Kostal case. Both cases make clear the central role trade unions play in the workplace and should give comfort to union members up and down the country.”
Unite says that the long-anticipated Employment Appeal Tribunal (EAT) judgment has huge ramifications for workers everywhere.
Sharon Graham, Unite general secretary, said: “This is an important legal victory for Unite and the wider trade union movement.
“Employers everywhere should take note. Unite the union will use every tool at its disposal to defend collective bargaining and will not tolerate employers like INEOS trying to bypass their obligations to negotiate.”
INEOS FPS has committed to reduce emissions from its operations to Net Zero by 2045
INEOS has already made progress, with emissions reductions of 37% since it acquired the site in 2005
The deployment of innovative Artificial Intelligence (AI) technology will further reduce emissions from its operations, demonstrating the company’s commitment to meeting UK/ Scottish Government targets
INEOS FPS has announced plans to deploy innovative Artificial Intelligence (AI)-driven optimisation technology at its Kinneil Terminal in Grangemouth that will deliver further carbon emissions reductions from its operations.
The decision follows the announcement of INEOS’ commitment to reduce greenhouse gas emissions from its operations in Grangemouth by more than 60% by 2030 as it targets Net Zero by 2045.
As part of its road map, the business is already making significant investments in emissions reduction projects at Grangemouth and deploying AI technology at Kinneil is another tool that will enable it to achieve the next phase of the transition to Net Zero.
Working with data analytics experts, OPEX Group, INEOS FPS will deploy the firm’s emissions.AI software, which optimises complex industrial facilities to deliver lower carbon emissions.
A real benefit emissions.AI will bring to INEOS’ systems is the way the tool calculates lowest achievable emissions; learning from the information received from hundreds of data points across our processes and always looking for what can be done better.
We believe that once the new software is fully integrated there is the potential to identify up to a 10% reduction in existing emissions – with further opportunities thereafter.
Opex Group’s emissions.AI software is leading edge technology. It will continuously monitor energy use across the Kinneil Terminal to pinpoint opportunities to minimise fuel and power consumption and further optimise plant operations. As well as having access to real time emissions data in greater detail the software will allow INEOS FPS’ operational teams to know when and where to optimise processes and plant for lower emissions.
Andrew Gardner, Chief Executive at INEOS FPS commented; “The installation of the emissions.AI software takes energy management to a new level, that will lead to significant CO2 savings.
“We are committed to delivering our roadmap to net zero and see technology as a key enabler to achieving our decarbonisation goals. Across our organisation we are embedding a culture of carbon awareness, including as part of daily operations. AI will assist our teams in unlocking immediate operational emissions savings by making emissions data instantly available to them.”
Chris Ayres, Chief Customer Officer at OPEX said: “We are delighted to support INEOS in their drive to reduce carbon emissions. Turning existing operational data into actionable emissions intelligence will give INEOS FPS’ teams access to the information they need to drive faster and better informed operational decisions, and get after day-to-day emissions savings opportunities.
“Data holds the key to empowering operations teams to contribute to decarbonisation targets. To gain a much deeper understanding of the emissions profile of their assets and identify the actions they can take to make a difference, today.”
